Key Reasons to use ERP in the Pharmaceutical Industry
Across the pharmaceutical industry, businesses use ERP to help manage and increase the quality of drugs, support regulatory requirements and increase employee productivity by managing assets and services more effectively than ever before. However, understanding the true value of a modern ERP system can be tricky if you don’t know what to look for. Let’s take a look at some key reasons to use ERP in the Pharmaceutical industry.
ERP in Pharma
Do you know the biggest reason a comprehensive software system is necessary for companies in this field? When it comes to the pharmaceutical industry, it’s undeniably high-risk. When you manufacture and distribute medicine, there’s a lot at stake if an accident occurs—both for you and your customers. To minimize these risks and make sure things go smoothly. You need an enterprise resource planning (ERP) system that can help keep everything straight.
Key Reasons
Pharmaceuticals and medical devices companies have extremely diverse supply chains, so there’s no one-size-fits-all business software solution. However, there are still several reasons why enterprise resource planning (ERP) has become a mainstay among pharma players:
Greater Visibility and Control of Supply Chain:
Pharma businesses face incredibly complex and regulated supply chains. By using ERP software, you can track each stage of your supply chain—from manufacturer to distributor to customer—all within one system. That way, if something goes wrong, you can identify where things went awry quickly. Also, by identifying areas that need improvement early on, you’ll be able to manage them accordingly.
Improved Processes:
Streamlining all aspects of your supply chain into one program enables more streamlined operations across all parts of your business. You’ll have a higher-level view of everything from sourcing materials and producing goods to warehousing inventory, shipping orders, and distributing goods. This makes it much easier for your company to respond quickly to customer needs (and demands).
Better Data Management:
Inefficiencies along every part of your supply chain will eventually affect data management at its core. Taking an overarching approach with ERP software means that you can use real-time data throughout every step along the way—from production through delivery. Centralizing data helps improve efficiency and allows for better decision-making. Saved
Time and Money:
With greater visibility comes greater responsibility, so many pharmacies would agree that ERP is invaluable because it puts everyone on alert about issues that may arise along with any point of their supply chain; as a result, organizations are usually quick to act when issues do arise. And being proactive instead of reactive not only saves time. But also saves money because issues aren’t likely to snowball or escalate into bigger problems down the road. As you see, there are several reasons why ERP has become popular among pharmaceutical companies. But even if yours isn’t currently implementing an ERP solution, other industries could stand to benefit from these solutions
By using an industry-specific system, your company will be able to maximize its business potential. This can help you develop new products, maintain an accurate inventory of supplies and data, keep up with customer demand and manage a myriad of other tasks. In other words, utilizing an industry-specific software solution means that your organization has a real opportunity to optimize efficiency
While it’s still common for pharmaceutical companies to use manual, paper-based systems for inventory tracking and distribution management, it’s time to realize that solutions like enterprise resource planning (ERP) are cheaper, faster, and more efficient. It’s not uncommon for an unoptimized system—that is, one that lacks a robust cloud-based solution or professional configuration—to generate as many as 100 pieces of paperwork each day.
Most people think implementing an ERP solution will be expensive or take years, but you can set up a cost-effective system within weeks if you choose your technology wisely. A study by Accenture estimates that adopting ERP software at dozens of major U.S.-based companies could save them up to $7 billion annually. Of course, saving money isn’t everything; efficiency helps manufacturers produce better products in less time while improving quality control procedures and cutting down on waste.
Pharmacy and drug manufacturing companies have unique challenges that mean they can’t make do with a one-size-fits-all solution. An older system for inventory management like Microsoft Dynamics GP, for example, doesn’t sync well with mobile devices because it was designed to run on Windows servers. Other solutions are designed specifically for customers in different industries and might not offer adequate customization options or specialized features. Be sure to choose an ERP provider who works directly with you. The goal is to create an optimized work environment, after all; you don’t want any bloat slowing down your workflow.
While most people associate enterprise resource planning with manufacturing and distribution operations, you don’t have to be a manufacturer or distributor of goods to use an ERP system. A business doesn’t even need inventory; it only needs transactions that require some sort of tracking. If you plan on buying and selling stock on a regular basis, for example, using an ERP solution will make your life easier.
Importance Of Erp In Pharma
If a pharmaceutical firm wants to minimize its risk of failure and enhance its chances of success. It’s vital that every function within the company has access to all of its data. This can only be achieved with an integrated enterprise resource planning (ERP) system. One of a business’s most important assets is its data.
In fact, a recent study by SANS Institute found that 67 percent of information security professionals surveyed said their organization did not have adequate controls in place to protect sensitive data against attacks from internal or external sources. Many firms aren’t even aware they have such vulnerabilities because they lack integrated systems for managing employee records. Even so-called paperless offices are often unable to recognize unauthorized electronic access due to poor management practices around IT usage.
Without these systems in place, employees may inadvertently share privileged documents via email, USB devices, or online file-sharing services. Or confidential information could end up on unsecured devices through theft or loss. Whatever form it takes, mismanagement puts businesses at serious risk of potentially costly fines, lost productivity, and reduced profitability due to market disruption.
Final Thoughts
If you operate in the pharma industry, then you’re likely subject to a whole host of regulations. And checks for quality assurance. Managing compliance is often cited as one of the companies’ primary reasons for investing in ERP; these systems allow businesses to comply with regulations without too much time or effort. How does it work? It all boils down to visibility. An ERP system will help you manage your inventory more efficiently. So that if something needs to be pulled from production lines at any point, you can locate products quickly. With an ERP system running operations behind the scenes, company leaders can also dedicate more time and resources toward growth opportunities—helping them capitalize on trends before their competitors even have a chance.
Choosing and implementing an enterprise resource planning (ERP) system is not a decision that can be made lightly. There is a myriad of factors to consider, including budgets, ROI models, legacy systems, and staffing. But when it comes down to it, there’s one question that should always be asked first: how can my organization improve its business processes?
